The deal, he said, is likely to conclude by December. The Cabinet Committee on Economic Affairs had on July 19 granted ‘in-principle’ approval to the strategic sale of the government’s existing 51.11 percent stake in HPCL to ONGC “along with the transfer of management control, which will result in HPCL becoming a subsidiary company of ONGC”.

But since the offer meant a transfer of management control from the government to ONGC, there was apprehension that it would trigger SEBI’s takeover code and compel ONGC to make an open offer to acquire an additional 26 per cent stake from minority shareholders, he said.

So, the terms of sale have been amended to state that “HPCL will continue to be a government company in terms of section 2(45) of the Companies Act, 2013, and will continue to be controlled by the Government of India through ONGC under the administrative control of the Ministry of Petroleum and Natural Gas”.